Benefit News

IRS Announces 2018 HSA/HDHP Limits

May 08, 2017

On May 5, 2017, the IRS released Revenue Procedure 2017-37 (available here) to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2018. These limits include:

The maximum HSA contribution limit effective January 1, 2018;

The minimum deductible amount for HDHPs for 2018 plan years (Note: higher minimum deductible amounts may apply for California insurance policies to comply with California state law requirements); and

The maximum out-of-pocket expense limit for HDHPs for 2018 plan years.

These limits vary based on whether an individual has self-only or family coverage under an HDHP. The following chart shows the HSA/HDHP limits for 2018 as compared to 2017. It also includes the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflation, and stays the same from year to year.

Type of Limit

2017

2018

Change

HSA Contribution Limit

Self-only

$3,400

$3,450

Up $50

Family

$6,750

$6,900

Up $150

HSA Catch-up Contributions
(not subject to adjustment for inflation)

Age 55 or older

$1,000

$1,000

No Change

HDHP Minimum Deductible

Self-only

$1,300

$1,350

Up $50

Family

$2,600

$2,700

Up $100

HDHP Maximum Out-of-Pocket Expense Limit
(deductibles, copayments and other amounts, but not premiums)

Burnham Benefits does not engage in the practice of law and this publication should not be construed as the providing of legal advice or a legal opinion of any kind. The consulting advice we provide is intended solely to assist in assessing its compliance with the Patient Protection and Affordable Care Act and other applicable federal and state law requirements, and is based on Burnham Benefit’s interpretation of federal guidance in effect as of the date of this publication. To the best of our knowledge, the information provided herein, and assumptions relied on, are reasonable and accurate as of the date of this publication. Furthermore, to ensure compliance with IRS Circular 230, any tax advice contained in this publication is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any tax-related matter.

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